- SUI token exhibited potential for a breakout, supported by rising trading volumes and a price surge
- Social dominance, Open Interest, and liquidation heatmap hinted at a bullish outlook for the altcoin’s price
Sui [SUI] token has recorded a significant surge in trading activity on the charts, hitting an impressive $350 billion in total swap volume at press time.
This hinted at a 12.98% hike over the last 30 days. For its part, the altcoin’s price rose by 7.72% in the last 24 hours too, with the crypto trading at $3.05.
Will SUI break free from the descending channel?
At the time of writing, the altcoin appeared to be on the verge of breaking free from a descending channel. After several months of trading within this channel, SUI bounced from a critical support zone – indicating potential for a bullish reversal.
The bounce suggested that SUI might be preparing for a northbound breakout if it can maintain its momentum.
However, resistance levels at around $3.2 could pose a challenge. And, a failure to break through this barrier may result in another period of consolidation or southbound pressure.
Source: TradingView
Assessing social dominance and volume
Social dominance and volume have been steadily rising, with social volume climbing to 112, and the social dominance at 0.53%. The aforementioned hikes hinted at growing interest in SUI. Especially since more attention from the community often correlates with price volatility.
The token’s social volume spiked significantly too, reflecting heightened engagement in online discussions. As a result, sustained social activity may bolster SUI’s market positioning – Potentially driving further price movement.
Source: Santiment
What does the liquidation heatmap say?
The liquidation heatmap revealed an intriguing market structure. It showed that significant liquidation levels are concentrated around the $2.9-$3.0 price range, highlighting a critical juncture for leveraged positions.
If the price dips below these levels, it could trigger a wave of liquidations, leading to increased volatility. However, if the price manages to stay above these levels, it could further strengthen the bullish outlook. Especially as it would allude to strong support from investors holding their positions.
Source: Coinglass
Is the Open Interest on SUI a bullish signal?
The Open Interest climbed by 8.23%, with the same flashing figures of $672.94 million at press time. The uptick in OI suggested that traders are actively holding positions, betting on further price movement.
Typically, an increase in Open Interest signals confidence in sustained trends, with the latest uptick pointing to positive sentiment for SUI’s future performance. Therefore, it’s likely that investors are positioning for a breakout, especially in light of the strong price action and increasing market interest.
Source: Coinglass
To put it simply, SUI may be poised for a potential breakout, with increasing volume, social dominance, and Open Interest supporting this notion. However, the resistance around $3.2 remains a key hurdle. If the altcoin can break past this level, it may continue its upward trajectory.
